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Making Ends Meet With A Minimum Wage

The regular minimum wage here in Davao Region as of January 2012 is only 260 pesos. If a person works at an average of 26 days in a month, he would get a gross monthly salary of 6,760 pesos. Normally, a worker is paid every 15th and 30th of the month. The minimum wage earner would get an average of gross income of 3,380 pesos.

Computing For The Average Net IncomeTo compute for the average net income, government dues must be deducted from the gross income. The minimum wage earner will have the following deductions: (233.30-Social Security System (SSS), Withholding Tax Exempted, 75.00-PhilHealth Contribution; Total Monthly Deduction of 308.30 pesos)

The net monthly income of a minimum wage earner after deductions would be 6,451.70 Pesos. Net pay every payday would be 3,225.85 pesos. This amount should support the daily needs of the minimum wage earner until next payday which is 15 days apart. The daily budget of the minimum wage earner should not exceed 215 pesos.

Computing For The Average Expenses of A Single Person (The Basic Expenses)If the average wage earner does not live far from work, he has to pay an average fare of 20 pesos going to work and back every working day. Computed at 13 working days, the minimum wage earner would spend 260 pesos.

If the person on a budget spends 40 pesos per meal and going through the day with 1 snack of 10 pesos, the average wage earner will spend 130 per day, a total of 1,950 pesos in 15 days.

If the person is renting bed space, the average wage earner will spend 800 pesos a month, an average of 400 every payday.

Computing For The Expanded Expenses of A Single PersonThe remaining amount of the net pay after deducting the basic expenses of an average wage earner is 465.85 pesos. This will be budgeted for the following: 1. Clothing (shirt, pants, shoes, underwears, etc.) 2. Cigarettes and Drinks (if, ever) 3. Cellphone load (everybody has cellphones, including the average wage earner) 4. Social activities (movies, parks, dating, bonding with friends, etc.)

This is just how i think the minimum wage earner lives with his income, the minimum wage earner might spend his money differently.

Making Ends Meet With A Minimum Wage
Reviewed by Elyong
on
2/26/2012
Rating: 5